The Coming Middle-Class Anarchy

11 posts / 0 new
Last post
Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
The Coming Middle-Class Anarchy

The Coming Middle-Class Anarchy

http://gonzalolira.blogspot.com/2010/10/coming-middle-class-anarchy.html

 

Brian and Ilsa—the nice upper-middle-class retired couple, who always follow the rules, and never ever break the law—who don’t even cheat on their golf scores—even when they’re playing alone (“Because if you cheat at golf, you’re only cheating yourself”)—have decided to give their bank the middle finger. 
  
They have essentially said, Fuckit
  
They haven’t defaulted—not yet. They’re paying the lower mortgage rate. That they’re making payments is because of Brian: He is insisting that they pay something—Ilsa is of the opinion that they should forget about paying the mortgage at all
  
“We follow the rules, and look where that’s gotten us?” she says, furious and depressed. “Nowhere. They run us around, like lab rats in a cage. This HAMP business was supposed to help us. I bet the bank went along with the program for three months, so that they could tell the government that they had complied—and when the government got off their backs, they turned around and raised the mortgage back up again!”

 

Jager06's picture
Jager06
Status: Gold Member (Offline)
Joined: Dec 2 2009
Posts: 395
Re: The Coming Middle-Class Anarchy

And this is only the beginning. I wonder what this mess is going to look like when the Genie is fully out of the bottle.

I know of two people already who are NOW strategically defaulting. They did their own title research yesterday, and called a lawyer after they found it had been transferred to MERS.

Break up the banks or bail them out? Any guesses?

Will hyperinflation come as a result, or catch everyone with their pants down while they fiddling their mortgage?

 

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1982
Re: The Coming Middle-Class Anarchy

From what I could see online, being regisetered on MERS (Mortgage Electronic Tracking Systems) seems simply a way to keep track of things in a paperless fashion: why would "being tranferred to MERS" be a warning sign? Not every home on MERS is being forclosed: it's a database, right?

gonzy's picture
gonzy
Status: Member (Offline)
Joined: May 1 2009
Posts: 6
Re: The Coming Middle-Class Anarchy

I would question the logic of carrying a mortgage when you are retired. Taxes and other essentials are bad enough without a mortgage.

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1982
Re: The Coming Middle-Class Anarchy

gonzy,

So would I. But we're not carrying a mortgage. That does not mean some idiot or scammer did not put our clear title in jeopardy.

I would question the logic of carrying a mortgage when you are retired. Taxes and other essentials are bad enough without a mortgage.

land2341's picture
land2341
Status: Gold Member (Offline)
Joined: Aug 20 2009
Posts: 402
Re: The Coming Middle-Class Anarchy

I personally know homeowners whose mortgages were called into question due to banking malfeasance despite their having paid faithfully every month for years.  The banks sold, resold and transferred their mortgage repeatedly and eventually lost track of who they really owed the money to.

That is the issue with MERS.  In some cases families are discovering that no one is clear about who owns their mortgage and they are suing their current mortgage holders for proof of ownership and withholding payments until the matter is settled in court.  It is a risky gambit,  but it could be a revolution if a whole lot of people took this tactic.  Most of the holders cannot prove their ownership.  Most homeowners can.  

It would be fun if this turned into the middle class revolution.

Full Moon's picture
Full Moon
Status: Diamond Member (Offline)
Joined: Oct 14 2008
Posts: 1258
Re: The Coming Middle-Class Anarchy

 There must be more than a few retired people who owe on their homes or they would not have those stupid reverse mortgage commercials .

My mother-in-law  told me that her financial advisor told her  that she need the mortgage for tax write off . And a neighbor said that their advisor told them  not to pay off their house .. invest the money instead .   OH boy.

FM

TNdancer's picture
TNdancer
Status: Silver Member (Offline)
Joined: Aug 20 2008
Posts: 127
Re: The Coming Middle-Class Anarchy

Apparently it doesn't take any more to be a "financial advisor" than it does a mortgage banker.  Money mouth

land2341's picture
land2341
Status: Gold Member (Offline)
Joined: Aug 20 2009
Posts: 402
Re: The Coming Middle-Class Anarchy
Full Moon wrote:

 There must be more than a few retired people who owe on their homes or they would not have those stupid reverse mortgage commercials .

My mother-in-law  told me that her financial advisor told her  that she need the mortgage for tax write off . And a neighbor said that their advisor told them  not to pay off their house .. invest the money instead .   OH boy.

FM

This is a no-win argument I have with my FIL all of the time.  He weathered the first depression in a childhood that was remarkably smooth.  His father never lost his job,  his income never went down, and as his father invested during the depression rather than before,  he did quite nicely for himself.    So FIL is completely convinced that now is the time to buy and as the value of money is going down money borrowed today will be worth less tomorrow.  At 86 I think his accounts should all be taken over anyway as he forgets things from moment to moment.  It scares me silly that he'll borrow against the house, invest it,  lose it and then croak leaving MIL homeless.  (She ain't moving in with me!)

land2341's picture
land2341
Status: Gold Member (Offline)
Joined: Aug 20 2009
Posts: 402
Re: The Coming Middle-Class Anarchy

If I were the average home owner I would probably take the "show me the title" bet and see what happens.  

 

We foolishly chose out mortgage bank very carefully,  choosing a small local bank whose CEO came out to see the house when it was finished.  They don't sell their mortgages.  This guy has a real Jimmy Stewart attitude dang it!!

It'll be fun if the masses really start doing this!

JustinChase's picture
JustinChase
Status: Member (Offline)
Joined: Aug 31 2010
Posts: 18
Re: The Coming Middle-Class Anarchy
Full Moon wrote:

My mother-in-law  told me that her financial advisor told her  that she need the mortgage for tax write off . And a neighbor said that their advisor told them  not to pay off their house .. invest the money instead .   OH boy.

FM

I love this argument.  "if you pay $10,000/year in mortgage insurance, you can write it off your taxes, at maybe a 30% tax rate, and get $3000 back on your taxes."

I'm happy to provide this "service" to them myself.  have them send me the $10k, and in April of next year, I'll send them $3k.

Have them tell their friends too :)

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments